Do landlords need a tax number?
napi.hu, 06.09.2016 – According to a bulletin issued by NAV, the Hungarian Tax Authority recently, no tax number is needed for landlords offering their property for a long-term lease, unless they are legal entities with a compulsory tax number. As the lease of properties for non-touristic purposes by private persons is exempt from VAT, no invoice needs to be issued for the rental fee – a receipt or any other form of verifiable record will be sufficient.
Touristic accommodation services, on the other hand, fall into the category called “other types of accommodation” and involve a formal business activity, mainly the provision of short-term accommodation and related services. Property owners have a choice of several forms of business and taxation methods. Most of them do so as private persons and must apply for a tax number and also register with the local notary public.